Introduction
“The Real Business of Blockchain: How Leaders Can Create Value in a New Digital Age” by David Furlonger and Christophe Uzureau, published in 2019, is a comprehensive guide for business leaders to understand and leverage blockchain technology for business innovation and value creation. This book emphasizes not just the technical facets of blockchain but also its strategic implications, urging leaders to rethink their business models, practices, and strategies.

Major Point: Blockchain serves both as a disruptive technology and a new strategic approach.

Action: Leaders should start by studying blockchain’s foundational principles and terminologies, understanding it as more than a technological upgrade but a radical shift in trust and transaction paradigms.

Example: The book highlights how blockchain transforms the traditional trust dynamics in supply chains. For instance, it eliminates the need for intermediaries by creating a transparent, immutable ledger that all parties can trust.

Major Point: The authors introduce a five-stage Blockchain Maturity Model (BMM) to help organizations assess their blockchain projects’ progress and potential impact.

Action: Businesses should assess their current stage in the BMM, from initial curiosity to full investment, to strategically plan their blockchain journey.

Example: An organization in the “Experimentation” stage can pilot blockchain projects in non-critical areas to gauge viability without risking core operations.

Major Point: Value creation with blockchain requires a balance of decentralization and tokenization.

Action: Develop a clear vision of how blockchain can resolve inefficiencies or unlock new opportunities within the business model, particularly through decentralization and the use of digital tokens.

Example: A decentralized finance (DeFi) initiative allows financial transactions without traditional banking infrastructure, reducing costs and increasing accessibility.

Major Point: Hybrid blockchains, which combine public and private network features, offer a practical solution for many businesses.

Action: Evaluate the use of hybrid blockchains to achieve the desired level of transparency and control.

Example: Walmart uses a hybrid blockchain to track produce from farm to store, ensuring food safety while maintaining competitive confidentiality.

Major Point: Effective governance in blockchain ecosystems is crucial, especially when implementing smart contracts that execute code based on predefined conditions.

Action: Establish a governance framework that ensures accountability, compliance, and conflict resolution in blockchain ecosystems.

Example: Ethereum’s decentralized autonomous organizations (DAOs) use smart contracts for decentralized governance, enabling stakeholders to vote on proposals and manage funds without intermediaries.

Major Point: Navigating the evolving landscape of blockchain regulation is essential for compliance and strategic positioning.

Action: Stay informed about regulatory developments and engage with policymakers to influence blockchain-friendly regulations.

Example: The book cites the European Union’s General Data Protection Regulation (GDPR) and its implications for blockchain projects, urging firms to consider data privacy in their blockchain designs.

Major Point: Tokenization of physical and digital assets can broaden market access and liquidity.

Action: Explore opportunities to tokenize assets, such as real estate or art, to expand investment access and enable fractional ownership.

Example: The tokenization of a luxury hotel allowed small investors to buy fractions of ownership, democratizing investment opportunities.

Major Point: Blockchain can enhance transparency and traceability in supply chains, reducing fraud and increasing consumer trust.

Action: Implement blockchain solutions in supply chain management to improve traceability from raw materials to finished products.

Example: IBM’s Food Trust network uses blockchain to trace the origin of food products, enhancing food safety and consumer confidence.

Major Point: Interoperability between different blockchain systems is necessary for broader adoption and functionality.

Action: Invest in or develop solutions that ensure compatibility and seamless interaction between different blockchain platforms.

Example: The effort by interoperability projects like Polkadot, which allows different blockchains to exchange information and work together.

Major Point: Investing in blockchain technology should align with long-term strategic goals rather than immediate financial returns.

Action: Formulate a long-term blockchain investment strategy that focuses on sustainable growth and innovation.

Example: ConsenSys invests in a multitude of Ethereum-based projects to advance the decentralized web, emphasizing ecosystem growth over short-term gains.

Major Point: Financial services can leverage blockchain for enhancing transparency, reducing costs, and automating processes.

Action: Financial institutions should pilot blockchain for applications like cross-border payments, trade finance, and identity verification.

Example: JPMorgan’s blockchain platform, Onyx, is designed for speedier and more secure cross-border payments, showcasing blockchain’s potential to revolutionize banking operations.

Major Point: Blockchain can support the development of smart cities through enhancements in services, sustainability, and citizen engagement.

Action: Municipal governments should explore blockchain for managing utilities, services, and public data securely and efficiently.

Example: The book describes how Dubai plans to become the first blockchain-powered government, using the technology for all government documents and transactions.

Major Point: Identifying valuable blockchain use cases within an organization requires a thorough understanding of its capacity to resolve specific issues.

Action: Conduct a blockchain readiness assessment to identify high-impact areas where blockchain can add value, such as data integrity or decentralized identity.

Example: Maersk’s blockchain-based platform for maritime shipping demonstrates blockchain’s usage to streamline global trade logistics, reducing documentation time and costs.

Major Point: Building blockchain capabilities requires investing in the workforce’s skills and understanding of blockchain.

Action: Develop training programs and partnerships with educational institutions to build blockchain expertise within the organization.

Example: IBM created the “IBM Blockchain Foundation for Developers” course, offering training and certification to develop a skilled workforce.

Major Point: Developing an ecosystem around blockchain projects is essential for scalability and collaborative innovation.

Action: Engage with other companies, developers, and stakeholders to build a collaborative blockchain ecosystem.

Example: Linux Foundation’s Hyperledger Project is a collaborative platform for developing open-source blockchain frameworks and tools, fostering an open-source blockchain ecosystem.

Major Point: Blockchain can transform the healthcare sector by improving data sharing, patient privacy, and operational efficiencies.

Action: Healthcare providers and organizations should pilot blockchain solutions for secure medical record management and streamlined administrative processes.

Example: Medicalchain uses blockchain to create a secure platform for accessing and sharing electronic health records, ensuring data integrity and patient privacy.

Major Point: As blockchain’s impact permeates various industries, businesses must prepare for wide-scale disruption and transformation.

Action: Create cross-functional task forces or innovation labs dedicated to exploring and strategizing blockchain applications.

Example: Furlonger and Uzureau mention HSBC’s Digital Transformation team focusing on integrating blockchain for streamlined trade financing, showing a proactive approach to blockchain adoption.

“The Real Business of Blockchain” by David Furlonger and Christophe Uzureau provides a thorough and actionable framework for understanding and leveraging blockchain technology in a business context. By balancing technical insight with strategic foresight, the book offers a roadmap for leaders to navigate and capitalize on blockchain’s transformative potential. Each step from understanding the basics to implementing strategic investments is illustrated with concrete examples and actionable advice, making it an essential resource for any business leader looking to thrive in the digital age.